Incentives

The City of Wichita Office of Economic Development offers a variety of incentive programs designed to broaden and diversify the tax base, encourage capital investment, create employment opportunities and provide the economic growth and welfare of the region.

The Wichita City Council has adopted an economic development policy which governs the use of incentives. The policy defines the eligibility criteria, required economic impact and return on investment. Industry sectors for which incentives may be used include:

Industrial Revenue Bonds are utilized to finance the construction or purchase of a facility and/or equipment. IRBs are issued by the City and purchased by investors (e.g. banks, private investors or the company). IRBs may provide lower interest rate financing and the possibility of a tax abatement for eligible companies.

Qualific​​ations

The percentage of taxes abated is based on capital investment and job creation. Majority of goods or services sold must be destined for customers outside of the Wichita Metropolitan Statistical Area (MSA). Company must pay average wages equal to or greater than the industry or Wichita MSA wage rate. City benefit/cost ration must be at least 1.3 to 1.

Economic Development Exemptions (EDX) are used to encourage manufacturing, research and development and warehousing/distribution companies to grow in Wichita. Taxes on improvements to land and buildings can be exempted for up to 10 years. All new business machinery and equipment are permanently exempt under state law. The percentage of taxes abated is based on job creation and capital investment.

Qualifica​tions

EDX can reduce operating costs during the initial 10 years of operation following an expansion.​

In order to remain competitve with other locations, forgivable loans and grants are occasionally offered to companies as an incentive to expand or relocate to Wichita. Loan proceeds (up to 100%) can be forgiven if capital investment and employment benchmarks are met.​

Tax Increment Financing (TIF) districts are used to fund the revitalization of deteriorating or distressed areas. TIF uses the increased property value resulting from redevelopment to help pay the upfront costs of the redevelopment project. The portion of new tax revenue representing the "tax increment" is used to pay for eligible redevelopment costs. TIF reduces the higher costs associated with redevelopment of property in blighted areas. Contact the Office of Economic Development for additional information.

Community Improvement Districts (CID) allow the governing body to levy additional taxes to fund improvements in the district. The taxes are derived from retail sales or special assessments on real property. CIDs can be used for commercial, industrial or mixed-use projects. CID tax revenue can be used to pay for a wide range of capital costs and certain on-going operating costs. CIDs may impose a retail sales tax of up to 2% or special assessment taxes on real property for up to 22 years. For additional information, read the CID policy. Contact the Office of Economic Development for further questions.

Documen​​ts

The Facade Improvement Program funds enhancements to building exteriors in downtown Wichita and neighborhood revitalization areas. The program provides a low-interest rate loan to owners or tenants with matching funds to help renovate building facades. For additional information and program rules, read the Facade Policy.

Docum​​ents

The Asbestos and Lead Based Paint Remediation Program funds the safe removal of hazardous material from commercial buildings in Wichita. Building owners may receive a low-interest rate loan to offset the remediation costs.​

Sales Tax and Revenue (STAR) Bonds are a mechanism for funding major commercial, entertainment and tourism projects. STAR Bonds are paid for by the increased state and local sales tax generated in the area. A STAR Bond project must meet many qualifications, including capital investment of at least $50,000,000 and businesses within the district must produce gross sales in excess of $50,000,000 each year. STAR Bond project require local support and approval from the Kansas Secretary of Commerce.​​​​​​​​​

The purpose of this program is to keep special assessment financing from creating a financial burden for buyers who purchase homes in developments that have incurred higher than typical development costs due to extraordinary development situations.